Search found 8778 matches

by Kevin M
Fri Dec 10, 2010 10:58 am
Forum: Investing - Theory, News & General
Topic: PenFed lowers rate on 7 year CD
Replies: 26
Views: 3303

Penalty / Term Remaining + margin = Difference in rate between new and old If rates rise two years into a 7-year term, you only have five years to enjoy the higher rate and recoup the penalty. You also have to add some margin to account for the loss in the put option value. Not breaking at the 2-ye...
by Kevin M
Fri Dec 10, 2010 10:10 am
Forum: Investing - Help with Personal Investments
Topic: Ready to make the AA change...Help Please
Replies: 7
Views: 1482

What advantages do you anticipate by waiting?
by Kevin M
Fri Dec 10, 2010 4:31 am
Forum: Personal Finance (Not Investing)
Topic: Paying off student loans
Replies: 34
Views: 5226

Pay minimum on student loan at 2.6% dropping to 1.6%. You can get more than that from a reward checking account or a 5 year CD from Ally Bank or PenFed. Put your cash into one of the latter. Use reward checking if willing to meet requirements, like making 10 or 12 debit card purchases per month, and...
by Kevin M
Fri Dec 10, 2010 12:00 am
Forum: Personal Finance (Not Investing)
Topic: Final Tax Return
Replies: 11
Views: 2314

You may have to file form 1041, the income tax return for estates and trusts. The income from the estate may not be large enough for this to be required. See the instructions and associated publications related to form 1041.

Kevin
by Kevin M
Thu Dec 09, 2010 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: Jim Cramer on bonds
Replies: 35
Views: 6914

There must be several Bogleheads that will be buying bonds pretty soon to rebalance, if they haven't already. The CD suggestions make some sense; but why buy CD's if rates are rising by the day? That seems odd to me because by the time they are redeemed at penalty to get something better, bonds are...
by Kevin M
Wed Dec 08, 2010 5:46 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Muni Bond holders
Replies: 12
Views: 2457

For money you are reasonably certain you'll hold for at least 4 months, the Ally Bank 5-year CD paying 2.40% APY is better than most short-term alternatives; will yield approximately 1.2% if you break at 4 months, which is better than most high-yield savings or checking accounts. Hold for a year, an...
by Kevin M
Tue Dec 07, 2010 3:33 am
Forum: Investing - Theory, News & General
Topic: Question on RMD from Inherited IRA
Replies: 8
Views: 1403

Had similar situation. Called IRS, and was told that they only care that the correct amount is distributed...doesn't matter which inherited IRA it comes out of. We took the distribution unevenly out of 3 of 4 inherited IRAs.

Kevin
by Kevin M
Sat Dec 04, 2010 3:14 pm
Forum: Personal Consumer Issues
Topic: What investing book would you / are you giving for Christmas
Replies: 21
Views: 2638

So are there any more 'financial' or 'business' books to recommend? I'm thinking this may also help CaliJim find a book for his brother. Here's a link to my recommended list (mostly investment books) with brief commentaries, and longer summaries for a few. https://docs.google.com/View?id=dfb5zhtc_5...
by Kevin M
Sat Dec 04, 2010 7:49 am
Forum: Personal Consumer Issues
Topic: What investing book would you / are you giving for Christmas
Replies: 21
Views: 2638

Bernstein's Investors Manifesto is at the top of my list. Short, not too challenging, and quite balanced. Acknowledges that total market portfolios are likely to beat most, but still puts it out there that tilting may provide higher returns.
by Kevin M
Sat Dec 04, 2010 7:32 am
Forum: Investing - Help with Personal Investments
Topic: Is employer stock considered part of your asset allocation
Replies: 17
Views: 2036

Didn't count them when working but did when retired. All stock was unrestricted on termination, but had 3 years to exercise options. Sold call options to hedge employee options, to help spread out tax bite over the three years. It worked out quite well. All that option trading was quite fun, but I d...
by Kevin M
Sat Dec 04, 2010 6:37 am
Forum: Investing - Help with Personal Investments
Topic: Out of room in tax advantaged accounts
Replies: 14
Views: 2254

Based on the detailed information you have provided I came up with the optimal solution for bonds in taxable: 5-year 2.75% APY CDs from PenFed. Yes, or 2.4% APY Ally Bank CD. With early withdrawal penalty of only 2 months of interest, effective APY if you withdraw after 4 months is about 1.2%, so w...
by Kevin M
Fri Dec 03, 2010 3:53 am
Forum: Personal Finance (Not Investing)
Topic: GNMA -Is now the time ?
Replies: 19
Views: 3608

Lee, are you already above the FDIC/ncua limits in PenFed 5 year CD paying 2.75% if this is IRA or Ally Bank 5 year CD paying 2.4% if taxable?
by Kevin M
Thu Dec 02, 2010 3:39 pm
Forum: Investing - Theory, News & General
Topic: How Many Symbols Do You Have Memorized?
Replies: 42
Views: 4739

For some reason I remember tickers of most ETFs I own or help others with, but can't remember hardly any of the mutual fund symbols, even the ones I've owned for awhile. I think it may be because I have to enter the ticker to buy ETFs with some sites (like Vanguard), and I monitor ETFs to estimate p...
by Kevin M
Thu Dec 02, 2010 5:41 am
Forum: Investing - Theory, News & General
Topic: Getting Shorter
Replies: 17
Views: 2393

hsv_climber wrote:If you are afraid of the losses then why not use 5-year PenFed CDs?

+1
by Kevin M
Thu Dec 02, 2010 5:16 am
Forum: Investing - Theory, News & General
Topic: PenFed lowers Cd rates .... again
Replies: 5
Views: 1451

The 5 year looks the best to me now.

Kevin
by Kevin M
Wed Dec 01, 2010 6:34 pm
Forum: Investing - Help with Personal Investments
Topic: Should we invest in Intermediate-Term Bond Funds today?
Replies: 26
Views: 4087

Is this a 401k or other plan with limited choices? If so, you can chew on the advice from others. I personally started selling a bit of some of my bond funds several months ago, and continued until prices peaked. I plan to reverse direction if rates rise somewhat above where I started selling. If th...
by Kevin M
Wed Dec 01, 2010 6:14 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Basics: What Will Rate Increases *Really* Mean?
Replies: 25
Views: 3358

Noob, have you looked at the actual price and interest rate history of some of the Vanguard bond funds? You can get daily values of both for up to a year at a time, or display high/low values for a year using the Vanguard price history search. Since you're focused on what *really* happens, note also...
by Kevin M
Wed Dec 01, 2010 1:58 pm
Forum: Investing - Theory, News & General
Topic: "The Challenges of Income Investing"
Replies: 29
Views: 4920

Can I buy a fund without the money there and ready to go? Get the end of day NAV?
Have vanguard pull the money from my bank account?

Yes you can buy using your bank account link, but no, you won't get end of day NAV; purchase will occur on the following day.
by Kevin M
Wed Dec 01, 2010 12:10 am
Forum: Investing - Theory, News & General
Topic: "The Challenges of Income Investing"
Replies: 29
Views: 4920

Ally 5-year CD

Although I own STIG and other inv. grade bond funds, I currently like the Ally 5-year CD better. Higher yield (currently 2.4% APY vs. STIG @ 1.76%) and lower risk: FDIC insured and only 2 month interest early withdrawal penalty. Not available for IRAs though (yet--supposedly by end of year), so curr...
by Kevin M
Fri Nov 26, 2010 2:28 am
Forum: Investing - Theory, News & General
Topic: PenFed January CD Deals - Worth Waiting?
Replies: 9
Views: 2297

Re: PenFed January CD Deals - Worth Waiting?

Wondering if it's worth waiting until January. Money to be transferred is in money market, of course earning next to nothing. This is an easy one. Since you are currently earning nothing on the money anyway, you can just buy the 7-year CD now and then when the January CD comes out, you can break it...
by Kevin M
Thu Nov 25, 2010 1:37 pm
Forum: Investing - Theory, News & General
Topic: PenFed January CD Deals - Worth Waiting?
Replies: 9
Views: 2297

PenFed January CD Deals - Worth Waiting?

I've already transferred some IRA money into a PenFed 7-year CD, and probably will do so again. I keep hearing about PenFed offering good deals in January to buy another CD. Wondering if it's worth waiting until January. Money to be transferred is in money market, of course earning next to nothing. ...
by Kevin M
Mon Nov 22, 2010 5:44 am
Forum: Investing - Theory, News & General
Topic: Why ladder taxable CDs out to 5 years?
Replies: 13
Views: 1902

I have done the math in detail. Maybe I should state this a little stronger: IMO it's a major mistake to get 1,2,3 or 4 year CDs anyplace but Ally. At today's 2.40% APY for the 5 year CD at 1 year you hit 2.03%, at 2 years your trailing APY is 2.21%, 3 years 2.27%, 4 years 2.30% and of course at 5 ...
by Kevin M
Wed Nov 03, 2010 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Investing Advice
Replies: 14
Views: 2655

Can you sell lots with Mutual funds to Tax loss harvest? Or is that all handled by the tax payer themselves? I love Vanguard, but it's much easier to identify specific shares you're selling with Fidelity (yes for mutual funds as well). The process with Vanguard (as I've read it described in posts h...
by Kevin M
Wed Nov 03, 2010 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: What do you think of these CD rates?
Replies: 22
Views: 7657

Ally is fine. Have had online savings there for some time, and have opened up 3 CDs in the last couple of months. Once you have online savings, you can open a CD in a few minutes online, and fund it from your online savings. For any money you plan to hold at least 4 months, it's hard to beat the All...
by Kevin M
Mon Nov 01, 2010 10:44 pm
Forum: Investing - Help with Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6136

I never set out to have a stocks/bonds/cash portfolio. It just so happened because while bonds are fixed income they are still volatile unlike CDs/savings. At least, that's how I see it. and then ... I am not sure about the reasoning of 18% stocks & 82% fixed income. The way I see it, I am will...
by Kevin M
Mon Nov 01, 2010 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6136

Sounds like rather than a stock/fixed-income allocation you want to have a stocks/bonds/cash allocation. Do you want a fixed amount of cash, or a percentage of your portfolio in cash? Either way, seems to me that you should specify that in your target AA statement. Alternately, you could consider ca...
by Kevin M
Sun Oct 31, 2010 3:05 pm
Forum: Investing - Theory, News & General
Topic: Bogle still not an international fan
Replies: 106
Views: 11094

Getting back to the original post, it's true that John Bogle isn't a fan of international. Neither is he a fan of tilting away from the total US market (for the equity portion of a portfolio). On the other hand, there are experts/authors who are classified as Bogleheads who do support an allocation ...
by Kevin M
Sat Oct 30, 2010 10:02 pm
Forum: Investing - Help with Personal Investments
Topic: muni bond questions
Replies: 6
Views: 1151

Re: muni bond questions

Does Vanguard allow unlimited transfers of money from a muni fund into checking without then locking the account for any future purchases for 2 months? The 2 month restriction generally doesn't apply to short-term bond funds, so it shouldn't apply to the short-term muni fund, but would apply to the...
by Kevin M
Sat Oct 30, 2010 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: All in Vanguard or spread it around?
Replies: 68
Views: 7889

At a minimum, in order for this protection to apply, you must take the following steps: Review your accounts regularly. Check your account frequently. Promptly and completely review all information we send you. Report any errors or discrepancies in your account and any suspected unauthorized transa...
by Kevin M
Sat Oct 30, 2010 4:11 pm
Forum: Investing - Theory, News & General
Topic: Bogle still not an international fan
Replies: 106
Views: 11094

3/4 of the outperformance form 2000-2010 was the result of the weakening dollar, not diversification. Or, you could consider currency diversification a subset of the overall diversification benefit. Whatever the underlying reason, there was a benefit in diversifying with international during this p...
by Kevin M
Thu Oct 28, 2010 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: Bogle Rule
Replies: 53
Views: 7525

I like the Bogle guideline as a starting point in discussing asset allocation with people, but I personally follow the Swedroe guideline of basing AA on willingness, ability and need to take risk. I'm 58 with 70% fixed income (including cash) because my need to take risk is relatively low.

Kevin
by Kevin M
Wed Oct 27, 2010 1:12 am
Forum: Personal Finance (Not Investing)
Topic: cant bring myself to buy more bonds
Replies: 28
Views: 4972

I don't see the problem. Any long term investor sold bonds to buy equities during the great stock plunge of 2008/09. Probably true for most long-term BH investors, but I used cash to buy both equities and investment-grade bonds during the plunge. As equities have generally recovered at least some o...
by Kevin M
Wed Oct 27, 2010 12:45 am
Forum: Personal Finance (Not Investing)
Topic: cant bring myself to buy more bonds
Replies: 28
Views: 4972

Re: cant bring myself to buy more bonds

Stock side is in decent shape (need to add some small cap and some more reit) but I cant seem to bring myself to buy bonds at the current time. Anyone else feel the same? I know cash is the only guaranteed loser in a long term portfolio (looking for 40 years) and still i cant do it. anyone got any ...
by Kevin M
Wed Oct 27, 2010 12:03 am
Forum: Personal Finance (Not Investing)
Topic: Poll: Best fixed income investment these days in taxable?
Replies: 6
Views: 1785

Argument against munis

I know the guideline is to hold munis in taxable, but it doesn't always provide the best after-tax return, even in the upper-middle tax brackets. VG short-term tax-exempt (TE): 0.57% VG limited-term TE: 1.04% VG int-term TE: 2.45% At 28% marginal tax rate, the Ally CD (2.5% = 1.8% after tax) knocks ...
by Kevin M
Tue Oct 26, 2010 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: Poll: Best fixed income investment these days in taxable?
Replies: 6
Views: 1785

The PenFed CD is good, but I voted other because I like the Ally 5 year CD better. With an early withdrawal penalty of only 60 days of interest, it addresses the rebalancing concern. Also, not sacrificing too much yield for the lower cost of cashing out early and reinvesting at higher rates if rates...
by Kevin M
Tue Oct 26, 2010 11:21 pm
Forum: Investing - Help with Personal Investments
Topic: Where To Invest Cash
Replies: 7
Views: 2652

+1 for the Ally 5 year CD with 60 day interest penalty. Intermediate-term bond rate with less than short-term bond risk. You can get a better rate from PenFed, but the penalty is 1 year of interest. You can exceed the normal $250K FDIC limit by using a trust or POD account, in which case it's $250K ...
by Kevin M
Mon Oct 25, 2010 3:19 pm
Forum: Investing - Theory, News & General
Topic: What is "Slice and Dice"?
Replies: 75
Views: 10284

Speaking of Vanguard, do they use the terminology anywhere? This is the only reference I could find: m Thanks mas. What better reference for a Boglehead wiki than a quote from John Bogle himself: Then—in part because the Bogleheads would be disappointed if I didn't—I'll turn to RTM as it is reflect...
by Kevin M
Mon Oct 25, 2010 1:47 pm
Forum: Investing - Theory, News & General
Topic: What is "Slice and Dice"?
Replies: 75
Views: 10284

Sorry if duplicate post, but I find no references to "slice and dice" in investopedia.com nor investorwords.com. The former comes up with some hits on "slice", but mostly discussing tranches of CDOs, etc. (apparently tranche is a French word for a slice). LadyGeek, if your object...
by Kevin M
Mon Oct 25, 2010 1:49 am
Forum: Investing - Help with Personal Investments
Topic: What Role is There For High Dividend Stocks?
Replies: 40
Views: 8376

I also agree that total return may not be as important to a retired person who might need the income to stay off a dog food diet. Dave Dave, I don't get that. Seems to me that total return is all that matters. I can generate income by selling equities if I need to. Your investment objective really ...
by Kevin M
Mon Oct 25, 2010 1:05 am
Forum: Personal Finance (Not Investing)
Topic: Trying to decide what to do with a lump sum
Replies: 28
Views: 4087

There are very good arguments for paying the mortgage, however I see that the student loan is for 17 years! I'd like to see a calculation of how much interest versus principal that would work out to and do the same for the mortgage. I don't think it's necessary to do calculations like this to see t...
by Kevin M
Mon Oct 25, 2010 12:33 am
Forum: Investing - Theory, News & General
Topic: What is "Slice and Dice"?
Replies: 75
Views: 10284

I haven't thought deeply about it before, although I consider myself a slice and dicer as well as a tilter, but thinking about it now ... I visualize slicing and dicing as slicing a portfolio along one dimension of a morningstar-type style box and dicing it along the other, whether for equities or b...
by Kevin M
Mon Oct 25, 2010 12:14 am
Forum: Investing - Theory, News & General
Topic: What is "Slice and Dice"?
Replies: 75
Views: 10284

Well quality and duration make up the two dimensions usually discussed. The third would be separating the government bonds from corporate bonds. Then there is this appendage to the side for high yield and munis. Retiredjg, puzzled that you don't see government/corporate as adequately characterized ...
by Kevin M
Sun Oct 24, 2010 5:01 pm
Forum: Investing - Theory, News & General
Topic: how can you beat wellsley??
Replies: 55
Views: 9452

I always find it humorous when I have personally experienced something, yet someone tells me it can't happen or won't work. I've been a Wellesley holder for years. No matter what the theory says, it kicks tail and takes names. This Diehard investing stuff is not religion to me. I am willing to buck...
by Kevin M
Sun Oct 24, 2010 2:55 am
Forum: Investing - Help with Personal Investments
Topic: Value Tilt in Taxable Portfolio - worth it?
Replies: 11
Views: 2529

I tilt toward value (and small and small-value) in taxable. Perhaps I haven't thought deeply enough about this, but was more influenced early on by Swedroe, and the notion of holding equities in taxable. I have huge respect for Dr. Bill Bernstein, but have been kind of puzzled by the strict emphasis...
by Kevin M
Sun Oct 24, 2010 2:32 am
Forum: Investing - Theory, News & General
Topic: how can you beat wellsley??
Replies: 55
Views: 9452

I always find it humorous when I have personally experienced something, yet someone tells me it can't happen or won't work. I've been a Wellesley holder for years. No matter what the theory says, it kicks tail and takes names. This Diehard investing stuff is not religion to me. I am willing to buck...
by Kevin M
Sat Oct 23, 2010 6:23 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns - company match vs. lower fees in the 401K plan
Replies: 29
Views: 3729

After maxing out the IRA, my model shows that the 401k still beats taxable for a wide range of assumptions, even for funds with fairly high ERs. Of course with high enough ER differentials, and certain tax assumptions, taxable could be better. If you are getting the match in the 401k and maxing out...
by Kevin M
Sat Oct 23, 2010 5:12 am
Forum: Investing - Theory, News & General
Topic: Scott Burns - company match vs. lower fees in the 401K plan
Replies: 29
Views: 3729

I wonder how useful this information is; i.e., how likely is it that employees will have any influence on their 401k plan? Perhaps a poll would be useful. I know I put a lot of effort into persuading my daughter's employer (very small business) to switch to a better plan, but all the owner focused o...
by Kevin M
Sat Oct 23, 2010 4:28 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion question
Replies: 2
Views: 778

All answers are here: http://www.irs.gov/publications/p590/ch01.html#en_US_publink1000230799 Bottom line: a conversion is treated like a distribution, and you pay taxes based on the ratio of deductible to non-deductible contributions in all IRAs (you can't separate the deductible from non-deductible...
by Kevin M
Sat Oct 23, 2010 3:57 am
Forum: Investing - Help with Personal Investments
Topic: After-tax 401(k) vs. taxable account
Replies: 20
Views: 5373

This is similar to a non-deductible IRA, except for the higher contribution limit of the 401k, and possibly higher fund costs. tfb has a blog post on this, and a spreadsheet to help with the decision: http://thefinancebuff.com/2008/09/a-non-deductible-ira-is-worth-it-for-me.html . One thing not incl...
by Kevin M
Fri Oct 22, 2010 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: What Role is There For High Dividend Stocks?
Replies: 40
Views: 8376

I also agree that total return may not be as important to a retired person who might need the income to stay off a dog food diet. Dave Dave, I don't get that. Seems to me that total return is all that matters. I can generate income by selling equities if I need to. Having said that, having fairly s...